Nanjing Tanker’s receiver aims to raise $7.1m

Nanjing Tanker’s receiver plans to raise at least CNY44.2 million (USD7.1 million) by disposal of the remaining 19.2 million shares in the company.

The shares held by the receiver will be auctioned at a knock-down price of CNY2.30 per share on 18 May, a statement of the receiver said on 15 May.

In April, Nanjing Tanker predicted it would return to the black in the first half of 2015 because of reduction in finance cost, lower bunker fuel cost, and a pick-up in the oil shipping market.

Revenue would also grow in the first half of 2015, according to a stock filing of Nanjing Tanker. In the first half of 2014, Nanjing Tanker’s loss amounted to CNY700 million.

For the first three months, the company returned to the black with a profit of CNY120 million, with revenue down 32% year on year (y/y) to CNY1.1 billion. The fall in revenue resulted from the disposal of its VLCC fleet in 2014, the company said.

During the period, the company’s finance cost slumped 59% y/y to CNY76 million, as it completed its restructuring to shed loans by end of 2014.

In addition, the company decommissioned six old vessels in 2014 during the restructuring. As of end of March 2015, the company operates 65 vessels with an aggregate capacity of 2.76 million dwt, comprising medium-range tankers, chemical tankers, LPG carriers, and liquefied ethylene gas carriers.

The company was delisted by the Shanghai Stock Exchange in June 2014 after posting four consecutive annual losses from 2010 to 2013.